HYDERABAD: Residents of municipalities surrounding Hyderabad are crying foul over exorbitant property tax being collected by the civic authorities in their areas. Their common complaint is: Property tax rates are much higher than those in the GHMC limits.
Chew on this: A owner of a residential building having about 3,500 square feet built-up area raised on a 300 square yard plot in Osman Nagar in Tellapur municipality pays Rs 50,000 towards property tax. Whereas, for the same size building in the upmarket Jubilee Hills areas such as Prashasan Nagar, a house owner pays just Rs 15,000 tax a year.
For the same building in municipal corporations such as Boduppal or Nizampet, the tax is very high. However, the tax is much lower in other parts of the city like Serilingampally circle in GHMC, where it is Rs 12,000 a year. “Many areas in Tellapur lack basic civic amenities such as roads and drinking water. But, the state government has been collecting more taxes. For example, work on a road from Gopanpally thanda to Kollur (Radial Road No. 30) began in 2016. But, it has not been completed till date. GHMC areas which have all facilities compared to its peripherals are charged lower property tax,” Tellapur Neighbourhood Association president Eshwaragari Ramana told TOI.
Some residents are up in arms as the civic bodies have been charging different tax rates in the same municipality.
Residents of four villages of Osman Nagar, Kollur, Edulanagupally and Velimela, which were merged into Tellapur in 2018 during the creation of the new municipality, say they pay higher tax. “While the municipality charges 0.24 paise per sq feet towards property tax, in our village it is 54 paise per sq feet on the land value. The government is sitting on our request to reduce the tax rate. At least, they should collect on a par with other areas,” a resident of Tudor Ken, a gated community in Osman Nagar, said.
The municipal administration department, however, blames steep hike in land values by the registration department due to which the residents are being charged higher property tax. “Tellapur municipality has sent a resolution to the state government seeking uniform taxes in the civic body limits. For instance, Tellapur areas are charged 24 paise per sq feet on the land value, while it is 54 paise in Osman Nagar and three other villages,” Tellapur municipal commissioner S Venkata Mani Karan said.
Sources in GHMC said while the corporation charges property tax based on annual rental value and fixed charges per sq feet built-up areas, other municipalities in the state have been collecting property tax based on the land value and built-up space, which is resulting in higher taxes. Property tax has not been revised in GHMC since 2007.